Patent Insurance: Pricey, But May Be Worth It

Law360, New York (February 3, 2006, 12:00 AM EST) -- In 2004, Genetic Technologies won a victory over Applera Corporation, the largest supplier of genetic equipment, because Genetic had the foresight to take out insurance on a series of patents over the noncoding parts of DNA that were originally thought to be irrelevant. The insurance fully funded the legal actions, preventing the company from buckling under litigation expenses.

Genetic Technologies’ experience shows that patent insurance can be a saving grace for companies that stand to lose their footing if such litigation arises. But such insurance isn’t...